Why the IHSG Surged More Than 1%

The Jakarta Composite Index (IHSG) opened higher on Thursday’s trading (2/7/2026), extending gains recorded the previous day. As of 09:16 Western Indonesia Time, the IHSG had strengthened 1.22%, or 69 points, to 5,764. The index’s highest position this morning was at 5,773.48. Transaction value reached approximately Rp 1.68 trillion, with a trading volume of 2.78 billion shares traded in 200,000 transactions. A total of 356 stocks rose, 189 fell, and 165 remained stagnant. Citing Refinitiv data, almost all trading sectors strengthened, with only healthcare experiencing a slight correction today. The sectors rising the fastest included raw materials (+2.57%), utilities (+1.85%), financials (+1.44%), and property (+1.36%). Blue-chip stocks and those affiliated with business conglomerate groups also strengthened significantly today. Shares of Indonesia’s three giant banks were the main pillars of the IHSG’s performance today. Bank Central Asia (BBCA) contributed a 17.69 index point gain, Bank Mandiri (BMRI) 9.82 index points, Bank Rakyat Indonesia (BBRI) 4.39 index points, and Bank Negara Indonesia (BBNI) 2.64 index points. More broadly, all of Indonesia’s major banks, including KBMI III, strengthened, led by the rise in BBCA and BMRI share prices. Meanwhile, conglomerate issuers also contributed to the IHSG’s performance, with the largest contributions coming from AMMN, BRMS, BREN, and MORA. All shares of Prajogo Pangestu’s Barito Group were recorded as strengthening today. Gold mining issuers also rose in unison today, with BRMS and ANTM helping to support the index’s performance. Entering the second day of the second half of 2026, Indonesia’s financial market faces a number of sentiments, ranging from economic data to a speech by Federal Reserve Chair Kevin Warsh. The trade deficit, the collapse of the Manufacturing PMI, rising inflation, and the Fed’s still-hawkish stance could pressure the rupiah and the IHSG today. Meanwhile, Asia-Pacific markets moved lower at the opening of trading on Thursday (3/7/2026), following declines on Wall Street as investors took profits on technology stocks, particularly in the semiconductor sector. South Korea’s Kospi index led the region’s decline, plunging 5.36% at the opening. The sharp drop prompted the Korea Exchange (KRX) to temporarily halt trading for five minutes to curb market volatility, while the small-cap Kosdaq index fell 3.55%. In Japan, the Nikkei 225 index weakened 0.70%, while the Topix managed a slight gain of 0.13%. Australia’s benchmark S&P/ASX 200 index corrected 0.59% in early trade. The negative sentiment in Asia followed Wall Street’s weaker close on Wednesday local time. The Dow Jones index had surged 423.46 points to touch an intraday record high before erasing all gains to close nearly flat. The S&P 500 fell 0.2% and the Nasdaq Composite corrected 0.7% as investors reduced exposure to chipmaker stocks that had previously driven the market’s rally.